Forrester cuts US IT spending forecasts

The US is unlikely to be the powerhouse for growth next year that many would hope with only a small increase in IT spending now being predicted for 2009.

The US is unlikely to be the powerhouse for growth next year that many would hope with only a small increase in IT spending now being predicted for 2009.

Analyst house Forrester has cut its US IT spending forecasts to 1.6% from 6.1% for next year as a result of the recession.

"Our US tech market forecast now assumes that the... decline in US real GDP in Q3 2008 will accelerate in Q4 2008 and the first half of 2009 before a weak recovery starts in the second half," said Forrester Research Vice President Andrew Bartels.

The conclusion was reached after Forrester looked at the Department of Commerce figures as well as the reports of 49 vendors across all sectors of the market.

Others have been predicting a recovery starting in the second half with Steve Forbes, publisher of the eponymously named magazine the latest to come out and say that the worst is nearly over.

Last month, Roy Vallee, CEO of Avnet, said that he expected the worst of the recession would be over by mid-way through next year.

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